referral source

Why Clients are not your best referral source

Clients are often thought to be your best potential referral source.  However, Tiffanie Kellog shares why they are not in this guest video blog.

About Tiffanie Kellog

For more information on Tiffanie Kellog, please visit her website at tiffaniekellog.com/

Tiffanie Kellog is a professional speaker, coach, and trainer with Asentiv, and is co-owner of a business with her husband.  Therefore, Tiffanie has helped entrepreneurs over the years make more money while saving time. Thus they can have more fun. She is dedicated to helping others make more money in less time.

To contact Tiffanie, call her at 813-263-9690 or email at referrals@tiffaniekellog.com

Counting Your Referrals

Referrals are the backbone of word-of-mouth networking, am I right?

So if you reach out 100 people with a referral and ten reach back, did you give 100 or ten referrals?

Many would immediately assume the higher number, because let’s face it–100 is better than 10. But that isn’t the case!

But WHY is this?

I come to you today with a Vlog (video blog) of this exact question, asked of me during the BNI US Conference in April.

You are not entitled to referrals

That’s right-you read correctly.

Referrals come from cultivating real relationships. They come from putting the work into your networking by giving others referrals before expecting them in return. They don’t come from sitting idly in a meeting, watching others getting referrals and wondering where yours are.

Are you wondering just how to get that referral pipe flowing?

1. Become a farmer. Except you’re not cultivating seeds, but relationships. You’re not harvesting produce, but referrals. Networking is about farming for new contacts (and referrals,) not hunting them. Have One-to-Ones with your chapter members. Get to know them and their business well so you can begin to pass referrals to them. This is how you cultivate a relationship-show genuine interest and make an honest attempt at helping them succeed. You’ll build trust with one another, which makes the next step much easier.  referral

2. Find a referral partner. As I write in my book, Truth or Delusion, “There is a way to the flow of referrals predicable and adjustable.” After you’ve gotten to know your fellow chapter members, choose one to partner up with to pass referrals back and forth to one another. Pick someone who needs referrals you can provide (for example, if you have a toy shop owner in your Chapter but you have no kids and rarely interact with them, they might not be the best partner for you.) Determine what types of referrals you need and ask your partner to do the same; then, exchange specific referrals based on your own networks. Begin to set up meetings with your referrals and if it’s appropriate, bring your partner with you. Afterward, analyze the meetings with your partner and use as much detail as possible.

3. Get your PH.D. in Networking. Ok, not literally. But you can become a gatekeeper of networks as you begin to connect your network with another person’s, and then another person’s, and then continue to build upon it. Become the go-to person in your business community-the person others come to if they needed a referral for anything. “Know a trustworthy plumber? Yeah, ask Susan-she knows everybody!” But instead of becoming the human phone book, you are connecting people in your community with good, honest businesses. This will not only help you build your network referrals, but it will also force you to continue to build and deepen your relationships and provide you with an excellent reputation.

What process has worked for you when referral gathering?

 

Unexpected Referral Sources

Sometimes good referrals come from sources that you least expect.  Many business people I meet want to network exclusively with CEOs and corporate presidents.  They tell me they don’t want to join most business groups, because top executives aren’t members.  If you’re waiting to find a group exclusively for CEOs and top managers, don’t hold your breath.

Even when you find such a group, it probably won’t help.  You see, they don’t want you!  They’re hiding from you.  Top business executives insulate themselves from those they think might try to sell them products or services.  However, if you develop a word-of-mouth-based business, there’s no problem.  Through word of mouth you can increase your volume of business because you know a hundred people, who know a hundred people, who in turn know a hundred people, and so on.  You are potentially linked to a vast network beyond your own, and you never know who may be in this extended network.

The owner of a drapery business told me about one referral he received in this way.  A friend referred an elderly woman to him because the friend thought that he could help her.  The woman, who was in her late seventies, had sought the help of many drapery companies to no avail.  She wanted to install a pull blind on a small window in the back door of her home; she feared that people going by could look in.  The woman explained that normally her son would take care of this but that he was on an extended business trip.  No area drapery company would help her because it would be expensive to come out and install a small blind like that.  The businessman agreed to help her because she was referred to him by a mutual friend and because she was obviously worried about the situation.

About a month later, the businessman was working in his drapery warehouse/showroom when he noticed an expensive stretch limo pull up in front of his commercial building. Curious, he watched as the chauffeur got out and opened the door for a man dressed in an expensive suit.

The man came into the businessman’s showroom and asked for the proprietor.  The businessman introduced himself and asked how he could help the gentleman.  The man asked whether he remembered the elderly woman for whom he had installed the small blind.  The businessman said he remembered her well.  The man said that he was impressed that the businessman did this job, because he knew that there was no money in it.

Photo courtesy of stockimages at freedigitalphotos.net

Photo courtesy of stockimages at freedigitalphotos.net

The woman, he said, was his mother, and she had raved about how nice the businessman was and how he had helped her when no one else would.  She had instructed her son to use the businessman’s service whenever he could.  The son told him that he had a new, 6,000-square-foot home by the ocean.  He asked the businessman to go out and take measurements, because he wanted to install window coverings throughout the entire house.

The businessman told me that it was the most profitable job he had ever received, and it came from a little, old woman who needed a small blind on her back door.  Ironically, the “great referral” you receive is probably not going to come from a CEO, but from someone who knows a CEO.

An architect in Las Vegas told me about a window washer he met in one of his networking groups.  He said he saw the window washer every week for over nine months before the window washer gave him his first referral.  This one referral, however, was worth over $300,000 to the architect!  You never know where a good referral may come from.  It may come from a little, old lady, or a cab driver, or a window washer.  So don’t ignore the possibilities of the contacts that other people have or can make for you.

Do you have or know of a story about a remarkable referral that came from an unexpected source?  Please share it in the comment forum below–I’d love to hear about it! Thanks!

True or False?–Your Best Source of Referrals Is Your Customers

Do you believe your best source of referrals is your customers?  If so, think again . . . the reason people sometimes fall into believing customers are there best source of referrals is that they’ve been trained to believe it and have never pursued any other source of referrals.  The only referrals they’ve ever received are from customers.

Don’t get me wrong–customers and clients can be a very good source of referrals and I’m not denying that.  However, many businesses (especially big corporations) are out of touch with the fact that other referral sources are available that can be extraordinarily powerful.  Clients, although often the most readily available sources, are not necessarily the best or steadiest sources of high-quality referrals.  The best sources in the long run are likely to be the people you refer business to.  When you help another businessperson build his or her business, you’re cultivating a long-term relationship with someone who’s motivated to return the favor by bringing business to you, who’s sharing your target market, and who will work systematically with you for mutual benefit.

With a well-developed referral network, you can realize more good referrals from one or two professional referral sources than from all your customers combined.  Why?  Because these professionals are better salespeople than your clients and they spend more time in contact with your target market.  They know how to sell to your client base.  They talk your talk.  If you’ve done your job of educating and training them to refer business to you, they can communicate your value better to their contacts.

There’s also a built-in challenge with viewing customers as referral sources.  If you’re spending part of your time with a customer trying to get referrals, you’re generating a conflict of interest.  Instead of devoting all of your time and attention to the customer’s needs, you’re diverting part of that effort toward your own self-interest.  Instead of devoting all your time and attention to the customer’s needs, you’re diverting part of that effort toward your own self-interest.  The customer may sense that they are not getting full value–and the truth is, they may be right.  You may be sending mixed messages.  You may be polluting customer service time with “gimme business” time.

Yes . . . you can expect to get referrals from a happy customer, but you’d better make darn sure the customer is indeed happy.  This means keeping your attention–and your motivations–focused on the customer’s needs when that is the purpose of the visit or call.  However, there’s nothing wrong with asking for another appointment specifically so you and your client can discuss how you can help each other.

What’s the best referral you’ve gotten recently (think about the referral you’ve been the most excited about)?  Where did that referral come from?  I’d really like for you to share your answer in the comment forum below because I’d love to get a conversation going about the diverse array of avenues from which good referrals can be generated.  My goal in writing this post was not at all to discount customer referrals, but rather to emphasize that they are not solely the best source of referrals–great referrals can come from many places.  For that reason, I’d love to hear where your most recent standout referral came from so please share your story with us–I know more people in addition to me would really like to hear about your experience!

 

True or False?–The More You Promote Yourself, the More Referrals You’ll Get . . .

If you believe that promoting yourself, in the traditional sense, is the best way to get referrals, I hate to break it to you but it’s actually not a particularly effective way of generating referrals.  The thing is, just talking about yourself is not enough–you’ve got to teach people how to refer you.

You’d think that people would listen when you describe what you do and then just naturally put two and two together when they come across somebody who needs your product or service but unfortunately it doesn’t often happen that way.  People need to be led down the path.  You’ve got to say, “This is what I do.  Here’s what you need to look for, and this is how you refer me.”

Every day we all stand in the middle of a sea of referrals.  They are all around us, they happen all the time, but unless we (and our potential referral sources) are trained to pick up on them, we are oblivious to them. 

The secret is to train yourself and your sources to listen for the language of referrals.  Tell them, “When someone says, ‘I can’t,’ ‘I need,’ ‘I want,’ or ‘I don’t know,’ whatever she says next is a possible referral for me.”  Teach your sources to listen for words or phrases expressing a specific need: “I can’t get this lawnmower engine running right,” or “I don’t know which tax form I need to use,” or “I want to remodel my dining room, but I don’t know any good contractors.”  One of these could translate into a referral for you or someone you know.

Remember also that referral success arises from a system where information flows in both directions.  Approach it not by promoting yourself but by learning about other people’s businesses in order to find business for them first.  After that you can explain to them what you do–if they’re interested.  Maintaining a balance, with an emphasis on the philosophy of Givers Gain®, is what will most efficiently and effectively bring you success in referral marketing.

Think of one person in your network whose business you are interested in knowing more about.  What ways can you think of to get the ball rolling this week in regard to opening up a discussion with that person about each other’s respective businesses?  Please leave your comments, thoughts, and ideas in the comment forum below.  Thanks!

 

Training Referral Sources to Generate Referrals for You

If you interact with your clients, customers, referral sources, and contacts with a referral mind-set, show them that you are a giver, help others, and continually and strategically give referrals, you’re modeling the behavior you want others to exhibit toward you.  By itself, however, that’s not enough to train them to give you referrals.

Contacts who are not involved in your strong-contact network may not be aware of what is involved  in the kind of true referral networking that you are conducting.  Often you will have to coach them as you go, letting them know exactly what you are doing, why you are doing it, and what they may expect from your efforts.

Let’s say you’ve heard about a colleague whose stolen credit cards have been used to run up some big charges: “Stephanie, I’ve been talking with a colleague about your identity-theft problem and have arranged for him to send you a number of internet links that will help you quickly straighten out your credit problems.  I also know a lawyer who specializes in this field.  Would you like for me to contact him for you?  I hope you’ll keep me updated on your progress, and let me know if there’s any other way I can help.”

Similarly, if you’re passing a referral to an untrained but potentially valuable referral partner, let him know exactly what you’re doing and suggest ways he can reciprocate: “Jim, I know a specialist who provides the exact services you say you need.  I’ve known him for fifteen years and have used him many times.  He’s good, and he’s trustworthy.  May I ask him to call you?  And by the way, if you know a general contractor who constructs steel-frame buildings in the Valley and can use the new kind of fasteners I sell, would you please consider giving me a referral?”

By talking openly about what you’re doing, you’re not only modeling the behavior you want from your potential referral partner, you’re getting him to think about it, which is an essential part of learning.  You’re also asking him to practice it in a way that will help him repeat the behavior later.  It’s not a guarantee that he will reciprocate, but it makes it more likely that he will get the idea and respond in kind–at first, out of simple gratitude; later, out of the realization that a continuing referral relationship is good business for both of you.

One of the best ways to train a referral source is to go to a professional referral-training seminar and take your source with you.  This way, you will both be trained by an expert and will be speaking the same language–the language of referrals.

If you have an additional tactic for training referral sources to generate referrals for you, I’d love to hear it.  Please share it in the comment forum below. Thanks!

Are You Building Deep Referral Relationships?

Many people have surface-level referral relationships.  They know just enough about a referral source’s business to get by.  They don’t actually know a lot about the person themselves.  They tend to say vague things like: “They are really nice,” “You’ll like them, they are a good person,” or “Well, if you just meet with them, I am sure you’ll like them.”

So, what are the key points to having a deep referral relationship?  If you know the following points about a person and his or her business, you would have a pretty deep referral relationship:

  • You believe they are an expert at what they do.
  • You trust them to do a great job and take great care of your referred prospects.
  • You have known each other for at least one year.
  • You understand at least three major products or services within their business and feel comfortable explaining them to others.
  • You know the names of their family members and have met them personally.
  • You have both asked each other how you can help grow your respective businesses.
  • You know at least five of their goals for the year, including personal goals and business goals.
  • You could call them at 10 o’clock at night if you really needed something.
  • You would not feel awkward asking them for help with either a personal or business challenge.
  • You enjoy the time you spend together.
  • You have regular appointments scheduled, both business and personal.
  • You enjoy seeing them achieve further success.
  • They are “top of mind” each and every day.
  • You have open, honest talks about how  you can help each other further.

You may be shocked at the level of personal knowledge required for a deep referral relationship, feeling that referrals should be all about business.  I completely disagree.  It takes a lot to develop this type of relationship, and my hope is that you’ll make the effort with someone you truly like, have the desire to help, and want to spend time with.

After reviewing the bullet points above, what conclusions have you come to about the depth of your current referral relationships?  Are your relationships more or less in line with these points, or could they use some work?  If you have some work to do, what are some of the tactics you are going to start with in order to deepen your relationships?  Please leave your thoughts in the comment forum below.

Building Your Network Effectively–Where to Start . . .

If you’re having a hard time building your network because you’re concerned people can’t seem to understand or relate to your business, it’s helpful to remember that before you can begin to network effectively, you need to find a way to explain your business in a way that people will easily understand. 
We ALL need to heed this rule of thumb and be able to clearly and simply communicate what it is that we do by pinpointing key aspects of our business for our potential referral sources.

My advice to anyone confused about how to clearly explain what it is that they do is to ask yourself these questions and write down your answers:

  • Why are you in business (other than to make a living)?  Why do you do what you do?  How does your business serve others?
  • What do you sell?  Most important, what are the benefits—not the features—of your products or services?
  • Who are your customers?  What are your target markets?  Be specific.  Look at all segments of your business to determine the niche or niches you prefer to work with.
  • What are your core competencies, and what do you do best?
  • How well do you compete?  How do you stand out from your competition?

These questions will help you explain what your business is all about, and make you more effective at implementing a comprehensive referral system.  By communicating these aspects of your business to referral sources, they’re learning how they can refer you; and that’s what networking is all about.

Thierry Mazué: Double Your Referred Buisness

In this video, Thierry Mazué, my good friend and Master Franchisee/Trainer for the Referral Institute in France, talks about two of the eight referral sources in referral marketing and explains how you can double your referred business simply by using two of them.

After watching the video, be sure to visit www.ReferralInstitute.com to learn more about the other sources of referrals and then come back to this site to leave your comments about which of the referral sources you currently use and which additional sources you feel you could begin to tap into.

The Referral Process–Steps 5, 6, and 7

In my last blog, I discussed step 4 of the eight-step referral process and in the weeks prior to that, I went over steps 1, 2, and 3 Today I’m going to cover steps 5, 6, and 7.

  • Step 5.  Report Back to Your Source

Report back to your referral source and let her know the outcome of your meeting (unless, of course, she went along with you).  Ask her to follow up with the prospect to find out about his impression of you.  Let her know how important it is for you to make her look good to the prospect.

  • Step 6.  Your Source Gets Feedback from the Referral

The referral source calls your prospect on your behalf to get information that you can use to address any concerns for your next meeting.  Since the prospect is likely to tell your source of any concerns that he may not have expressed to you, this is the best way to find out what your prospect is thinking.

  • Step 7.  Your Source Reports Back to You

Your source reports back to you with more information about the prospect. This increases your chances of closing the sale on the next call or, if the prospect is already under contract or not currently in the market, perhaps at the next available opportunity.  With this information, you can contact the prospect at a more appropriate time and be first in line with a proposal and sales plan ready to go.

If you would like to find out about the last step in the easy, eight-step referral process, be sure to come back next week.  Step 8 is usually most people’s favorite step and it’ll probably be yours too because it’s all about closing the deal.

The Referral Process–Step 4

Over the past few weeks, I’ve been explaining the easy, eight-step referral process in increments. Today I will be going over step 4 and if you’d like to review the previous steps I’ve already covered, simply click on each of the following links:  step 1, step 2, and step 3.

  • Step 4.  Meet with the Referral

Now comes the move you’ve been waiting for: your first meeting. You might close the deal on your first call, but it’s unlikely.  Instead, you’re probably going to be getting acquainted with your potential new customer and gathering information to help you prepare a proposal. Now, what if you could get your referral source to go along?  That would make it a real powerhouse meeting.  It would add to your credibility and instantly deepen your relationship with the prospect.

If you do close the deal at your first meeting, you might think the referral process is over, but in fact it’s just started. Before you start turning cartwheels on your way out of the building, call your referral source, tell her what a great referral it was, and thank her for it.  Then, when you’re back in your office, set your “thank you for the referral program” in motion.

If you don’t currently have a “thank you for the referral program,” you’ll need to create one right away because thanking your referral sources is extremely important if you want to ensure that they keep sending referrals your way.  To learn more about referral incentives for your sources, you can check out a couple of blogs I wrote on the topic:  “Simple Recognition Is Sometimes the Best Reward” and “A Win-Win Way to Reward Referral Sources.”

If you’re interested in learning  more about the easy, eight-step referral process, be sure to check back next week because I’ll be explaining steps 5, 6, and 7.

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